Question

Templet Corp. earned net income of $ 256 comma 500 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Templet​'s books include the following​ figures:​(Click the icon to view the​ figures.) Read the requirement Requirement 1. Compute Templet​'s EPS for the year. Select the​ formula, then enter the amounts to calculate the​ company's earnings per share for 2018.

Answer 1

Earnings per share for 2018 is $5.5

Step-by-step explanation:

Earning per share is the ratio of net earning of the business per outstanding share of the business after deducting the preferred dividend from net earning.

Net income = 256,500

preferred dividend = 30,000 x 4% = 1,200

Earning per share = ( Net Income - Preferred dividend ) / Outstanding shares

Earning per share = ( $256,500 - $1,200 ) / (48,000 common shares- 1,700 Treasury shares ) = $255,300 / 46,300 share = $5.5 per share

Data for the outstanding shares were missing, Data from attached question is used to calculate the EPS. Please find attached file.